Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $300,000. Projected net cash inflows from the equipment are as follows: Year 1 $130,000 $90,000 Year 2 Year 3 Year 4 Year 5 Year 6 $140,000 $130,000 $94,000 $80,000 Sunny Days Corporation's hurdle rate is 12%. Assume the residual value is zero. What is the net present value of the equipment? Present Value of $1 Periods 10% 12% 14% 16% 1 0.909 0.893 0.877 0.862 2 0.826 0.797 0.769 0.743 3 0.751 0.712 0.675 0.641 4 0.683 0.636 0.592 0.552 5 0.621 0.567 0.519 0.476 6 0.564 0.507 0.456 0.410 Present Value of Annuity of $1 Periods -10% 12% 14% 16% 1 0.909 0.893 0.877 0.862 2 1.736 1.690 1.647 1.605 3 2.487 2.402 2.322 2.246 4 3.170 3.037 2.914 2.798 5 3.791 3.605 3.433 3.274 6 4.355 4.111 3.889 3.685 -$164,038 $19,685 $164,038 $183,723